Bitcoin may be on the eve of its fourth “halving” this Friday. It once fell below 60,000 US dollars in the intraday session on Wednesday, a new low since March 6, and fell by about 4% during the day. US spot Bitcoin ETFs generally fell by more than 3%.
On Wednesday, April 17, Bitcoin once fell below the important mark of 60,000 US dollars in the intraday period, hitting a new low since March 6, with an intraday decline of about 4%. US spot Bitcoin ETFs generally fell nearly 3%. An ETF that is twice as long as Bitcoin $ProShares Ultra Bitcoin ETF (BITU.US)$A sharp drop of 5.64%, doubling the shorted Bitcoin ETF $ProShares UltraShort Bitcoin ETF (SBIT.US)$It surged 5.91%.
Since reaching a record high of nearly $74,000 on March 14, Bitcoin has declined by around 19%.
Other smaller digital currencies such as Ethereum, Solana, and Dogecoin all fell on Wednesday. If extended to the last 7 trading days, the decline generally reached double digits, and there are not a few digital currencies that have dropped by more than 20%.
On Wednesday, digital currency concept stocks had mixed ups and downs in the intraday market.$Mercurity Fintech (MFH.US)$up 13.5%,$Canaan (CAN.US)$Increased by 0.91%, “large Bitcoin holders” invest in micro-strategies$MicroStrategy (MSTR.US)$It plummeted 5.26%.
The previous article mentioned that while prices are weak, Bitcoin may be “halved” for the fourth time in 15 years since its inception this Friday. This incident will become the most watched and influential headline news in the coin industry recently.
“Halving” means “halving” the rewards miners receive through mining. Every time the Bitcoin blockchain generates 210,000 blocks, the Bitcoin block reward is cut in half. One of the original purposes of Bitcoin's design was to become a deflationary asset, and its value will continue to increase over time. As a result, the Bitcoin rewards miners receive must decrease over time, thereby limiting the total supply of Bitcoin.
It's worth mentioning that the previous few “halves” all occurred a few months before the Bitcoin bull cycle began. In theory, the impact of the “halving” on the price of Bitcoin may have been reflected because the approximate dates are known in advance. But what's different this time around is that once Bitcoin hit a record high, it has never been halved so quickly. Analysts believe this “halving” may be one of the drivers of this year's rise in the crypto market.
Bitcoin's decline since last week has been accelerated by the liquidation of long positions in the digital currency. On Friday, around $7.8 billion worth of long cryptocurrency bets were liquidated within 24 hours. Due to the situation in the Middle East, some investors tend to take risks, and cryptocurrencies experienced a sharp drop this past weekend.
Despite this, many market participants are still largely bullish on Bitcoin's long-term outlook. They mentioned that derivatives trading counters continue to see longer-term call option purchases as investors expect higher prices in the second half of the year.
Editor/Somer